• Investing
  • Stock
  • Economy
  • Editor’s Pick
Portfolio Performance Today
Economy

Are We Doomed to Repeat Economic History, Even When We Know It?

by August 29, 2025
by August 29, 2025

I regret it, but George Santayana’s famous statement, “Those who cannot remember the past are condemned to repeat it,” is misleading at best.

The statement implies that if we do remember the past, we will not repeat it. But, based on the history I’ve learned, that’s not true.

We see a regrettable repetition right now: In 1930, more than a thousand economists signed a statement opposing the Smoot-Hawley Tariff bill, warning it would lead to a destructive trade war. Congress passed high tariffs anyway, and they contributed to the Great Depression. This year, nearly two thousand experts, also led by economists, warned against raising tariffs. Yet our president is slapping on tariffs right and left, and Congress is silent.

There are three major reasons why historical remembrance does not bring enlightenment.

First, do we even know the causes of historical events? 

Thousands of books have been written about World War I, yet there is no consensus on what caused it. The events preceding it were “intricate enough to accommodate any number of hypotheses,” historian Christopher Clark wrote in The Sleepwalkers: How Europe Went to War in 1914.

Was it the rigid alliances and treaties? Miscommunication? Ignorance? Serbian nationalism? Did everyone expect it to be another self-limited Balkan altercation? (There had been two.) Were leaders “sleepwalking”?

Similarly, we don’t fully know why the US had a civil war. Was it inevitable? Could it have been avoided by reimbursing plantation owners for freeing slaves? Or cracking down on the expansion of slavery to other states? Possibly. But if so, how would slavery have ended? Avoiding one tragedy might have perpetuated another. Have we learned anything about the Civil War that can possibly guide us in the future? I don’t think so.

True, some lessons can be learned. After World War II, the Allies must have reflected on the consequences of the punitive Versailles Treaty after the First World War. (One of those consequences was World War II.)  So they helped rebuild their former European enemies through the Marshall Plan. As the war ended, though, they also handed over millions of eastern Europeans to the tyrannical control of Joseph Stalin. Surely they “remembered” what the Soviet Union had become.

The failure to learn doesn’t just happen in war. Mysteriously, the Federal Reserve seems to chronically misunderstand history. As Allan Meltzer wrote in 2016, the Fed’s tight money policy contributed to the Depression, and its easy money policy after the 2007–2009 recession financed the large budget deficits that continue.

Second, suppose someone does understand and remember the causes. Who is that someone? 

Chances are, it’s not the president of the United States. Yet the president can wield enormous, even disastrous power, based on whatever he happens or chooses to know.

George W. Bush was “untutored in foreign policy and ignorant of the Middle East,” writes Jeffrey Record, yet he initiated a war in Iraq. Even his father’s closest aides could not persuade him that this was reckless. Somehow, the tragic lesson of Vietnam did not register — that warring against a politically complicated, divided country with minimal importance to the United States leads to disaster.

Third, the president is only one force among many:

Special interests like the military-industrial-academic complex, democratic socialists, national conservatives, and uninformed voters all pull in different directions. Even if the president or his aides have learned the lesson, how can the inevitable compromise retain it?

In 1970, Daniel Moynihan, then a counselor to President Richard Nixon, wrote a famous memo. He stressed that black families were progressing economically, and the best policy would be a period of “benign neglect” — rather than more welfare programs. Moynihan’s use of the term “benign neglect” echoed Edmund Burke’s 1775 recommendation that the British Crown engage in “wise and salutary neglect” of the American colonies rather than interfere. In 1970, however, the term aroused such a negative emotional response that it poisoned whatever chances Moynihan’s policy might have had. (And in 1775, Burke didn’t have much luck, either.)

My graduate adviser in history responded to these thoughts by saying that history does not repeat, but it instructs. Yes, it instructs us about how and why we have come to where we are, and that’s why I love it. But hopes that remembering the past can guide domestic or world politics have been dashed again and again.

0 comment
0
FacebookTwitterPinterestEmail

previous post
IoT in Aviation Market Size to Surpass USD 11.27 Billion by 2034
next post
Legal group sues FDA over puberty blocker records, citing alleged Biden-era cover-up

Related Posts

I Worked With Ronald Reagan. Here’s What He...

November 14, 2025

Sanctions Didn’t Destroy Venezuela’s Economy — Socialism Did 

November 14, 2025

DAVID MARCUS: Why Republicans desperately need a Trump-centered...

November 14, 2025

From carpools to motorcycles, House lawmakers overcome air...

November 14, 2025

Jack Smith meeting with then-FBI Director Wray recorded...

November 14, 2025

DOJ seeking suspect after attack on US Attorney...

November 14, 2025

Democrat civil war erupts after moderate accuses progressive...

November 14, 2025

Fetterman hospitalized after fall near home in Pennsylvania

November 14, 2025

Trump DOJ opens mortgage fraud probe into Eric...

November 14, 2025

Former Rep. Louie Gohmert blasts Jack Smith for...

November 14, 2025

Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.

By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

Recent Posts

  • ByteSnap Design 2026 predictions: Convergence of AI, wireless, and cybersecurity in embedded design

    November 14, 2025
  • How IoT is Transforming the Modern Garden

    November 14, 2025
  • I Worked With Ronald Reagan. Here’s What He Really Thought About Tariffs

    November 14, 2025
  • Sanctions Didn’t Destroy Venezuela’s Economy — Socialism Did 

    November 14, 2025
  • The installed base of fleet management systems in North America to reach 33 million units by 2029

    November 14, 2025
  • Retail investors showing signs of fatigue after carrying the bull market says BofA

    November 14, 2025

Editors’ Picks

  • 1

    Pop Mart reports 188% profit surge, plans aggressive global expansion

    March 26, 2025
  • 2

    Meta executives eligible for 200% salary bonus under new pay structure

    February 21, 2025
  • 3

    New FBI leader Kash Patel tapped to run ATF as acting director

    February 23, 2025
  • 4

    Walmart earnings preview: What to expect before Thursday’s opening bell

    February 20, 2025
  • 5

    Anthropic’s newly released Claude 3.7 Sonnet can ‘think’ as long as the user wants before giving an answer

    February 25, 2025
  • 6

    Cramer reveals a sub-sector of technology that can withstand Trump tariffs

    March 1, 2025
  • 7

    Nvidia’s investment in SoundHound wasn’t all that significant after all

    March 1, 2025

Categories

  • Economy (3,222)
  • Editor's Pick (326)
  • Investing (185)
  • Stock (2,183)
  • About us
  • Contact us
  • Privacy Policy
  • Terms & Conditions

Copyright © 2025 Portfolioperformancetoday.com All Rights Reserved.

Portfolio Performance Today
  • Investing
  • Stock
  • Economy
  • Editor’s Pick
Portfolio Performance Today
  • Investing
  • Stock
  • Economy
  • Editor’s Pick
Copyright © 2025 Portfolioperformancetoday.com All Rights Reserved.

Read alsox

Far-left firebrand says she ‘never had a...

July 10, 2025

The Great Covid Exodus: How the Pandemic...

April 15, 2025

Karoline Leavitt says she won’t attend White...

March 17, 2025